Despite Anthropic Valuation Concerns... VCs: "AI Investment Will Go All the Way" [VCs Today]

"Anthropic's Growth Hasn't Stalled," Broadly Optimistic
October Startup Investment Tops KRW 1 Trillion; AI and Robotics Account for 53%

As Anthropic moves toward an initial public offering (IPO) with sharply lowered expectations, keeping the debate over high artificial intelligence (AI) valuations alive, attention is turning to domestic venture capital (VC) firms’ continued focus on AI investment. Large investments continued in October, keeping the figures robust, but there is also considerable nervousness, as Anthropic’s listing could send ripples through investment markets at home and abroad.

According to The VC, a startup investment data platform, domestic startup investment totaled 1.0187 trillion won in October, topping 1 trillion won in a month for the first time in five months. AI and robotics accounted for 53% of the total, and all six companies that received investment from overseas investors were deep-tech firms. Cumulatively, from January through October this year, the number of investments fell 28% from the same period last year, while the amount invested rose 91%.

Investment Remains Robust, but Exit Routes Are Narrowing

Most of the figures for October were compiled before Anthropic's public S-1 filing on October 26 and the sharp drop in AI stocks early this month, so the impact of Anthropic should not yet be reflected. However, signs of strain in the IPO market, a key route for investors to recoup their investments, had emerged even before Anthropic. Ellice Group, which debuted on KOSDAQ on October 20, raised about 10 trillion won in subscription deposits from retail investors, but its shares plunged 32% below the IPO price of 90,500 won on the first day of trading. Lablup priced its IPO at the bottom of its indicative price range.

VC exits are also slowing. According to the Venture Investment Comprehensive Portal, IPOs accounted for 37.9% of exits in the first half of the year, up from 24.3% in 2022. However, industry figures show that major VCs sold just 14.9% of their stakes in companies listed on KOSDAQ this year within 120 days of listing, less than half the 30%-plus level seen in each of the past four years. The outlook for upcoming exits is also pointing to delays. According to investment banking (IB) industry sources, MegazoneCloud is considering postponing its preliminary review application to the first quarter of 2027, while Rebellions and Upstage are also reportedly considering pushing their plans back to 2027 or later.

Although pessimism is emerging in a market that had been uniformly optimistic, the VC industry broadly continues to view AI's long-term growth prospects favorably. "Investment in AI is not a trend that emerged this year; it has built up over several years," one VC CEO said. "Even if Anthropic's growth is moderating, its growth prospects themselves have not turned down, so the direction and flow of investment will not change." He added, "What matters is setting an appropriate IPO price and completing the listing itself. If a company succeeds in listing, despite a lower valuation, that will bring positive momentum to the market."

"Nvidia, Not Anthropic, Is the Wild Card"

Nvidia CEO Jensen Huang, SK Group Chairman Choi Tae-won, LG Group Chairman Koo Kwang-mo, and Naver Chairman Lee Hae-jin have dinner at a Korean barbecue restaurant near Hongdae in Mapo-gu, Seoul, on June 5. Yonhap News

Some analysts say Nvidia, rather than Anthropic, is the factor that will have a greater impact on the mood surrounding AI investment by domestic VCs. B, CEO of an AI and deep-tech-focused VC, said, "I believe the market has already factored in its outlook and assessment of Anthropic. From the perspective of domestic VCs, Nvidia is the more important point." Referring to the controversy surrounding Nvidia CEO Jensen Huang and the company's falling share price, he said, "The pressure on Jensen Huang's leadership and the rise in AMD and Broadcom shares could be seen as signs of cracks in Nvidia's dominance."

On November 8, Nvidia said its board's independent directors committee would investigate reports related to CEO Huang, and its share price fell for two consecutive days starting November 9 (local time). Over the same period, AMD and Broadcom gained around 3% each.

B said these cracks could create an opportunity for domestic neural processing unit (NPU) companies. "These companies are not yet at a level where they can compete directly with Nvidia; they are targeting the market for specialized chips that reduce power consumption and costs," he said. "Still, if Nvidia's market dominance weakens, domestic companies could find room to grow in the tiers below it." He added, "It does not seem likely that Anthropic will dampen AI investment. Rather, the mood among domestic VCs could change depending on how the situation surrounding Nvidia unfolds." The domestic NPU industry has already attracted substantial funding. Rebellions raised 640 billion won in a pre-IPO round, while FuriosaAI secured 820 billion won in a Series D round.

This content was produced with the assistance of AI translation services.